European stocks rise with US futures; crude declines

Bloomberg

European stocks advanced and US index futures edged higher following a mixed session in
Asia, as investors weighed moves across the globe to relax restrictions for the coronavirus. Crude oil slipped, while Treasuries were steady.
Gains in banks and miners drove the Stoxx Europe 600 Index higher at the open. Contracts on the three main American equity indexes also ticked up, after US shares climbed even in the wake of a historic surge in unemployment. Japanese shares outperformed amid talk of a potential further supplementary budget, while Korean equities dipped and Shanghai was little changed amid thin Asia-Pacific trading. The dollar drifted higher versus most of its major peers.
President Donald Trump is trying to convince Americans it’s safe to return to work and social life while combating a coronavirus scare moving closer than ever to his own office. The UK outlined plans to ease a lockdown beginning Wednesday, though South Korea is seeing a flare-up in cases tied to nightclubs in Seoul. With news trickling out daily on how economies will restart, equities are grinding higher for a second month in May, sparking questions about valuations.
“Much of the eventual improved growth and virus news is already priced into markets,” said Bob Baur, chief global economist at Principal Global Investors LLC. “Because so much future growth and uptrend potential is priced in, we expect a period of relapse and consolidation through June.”
Elsewhere, West Texas crude edged lower, following a 25% advance last week, when oil capped its first back-to-back gain since February. Indian bonds slumped after the government lifted borrowing to offset revenue lost due to the pandemic. The yield on 10-year bonds climbed the most since February 2017.
The Stoxx Europe 600 Index climbed 0.6% as of 8:20 am London time and futures on the S&P 500 Index gained 0.3%. While Nasdaq 100 Index futures advanced 0.4%, the MSCI Asia Pacific Index increased as much as 0.8%.
The Bloomberg Dollar Spot Index advanced 0.1% and the euro declined 0.1% to $1.0833. While the British pound decreased 0.1% to $1.2394, the Japanese yen weakened 0.5% to 107.19 per dollar.
While the yield on 10-year Treasuries gained one basis point to 0.69%, Germany’s 10-year yield advanced two basis points to -0.52%. The spread of Italy’s 10-year bonds over Germany’s decreased seven basis points to 2.316 percentage points and Australia’s 10-year yield advanced seven basis points to 0.9735%.
West Texas Intermediate crude decreased 1.9% to $24.28 a barrel. While gold strengthened 0.3% to $1,707.66 an ounce, LME copper advanced 0.9% to $5,319 per metric ton.